Regulator the Financial Conduct Authority (FCA) has announced that payments for mis-selling by banks have begun.

The FCA found that banks selling products designed to protect small companies, but as rates fell, they had to pay bills running into the tens of thousands and faced larged exit penalties.

By the end of August, 10 offers of redress have been accepted by businesses, totalling £500,000. The FCA expects this figure to increase rapidly over the coming months – 210 offers have already been sent to customers with a further 1,700 offers due to go out shortly.

Martin Wheatley, chief executive of the FCA said:

With 85 per cent of cases now under review, banks have made progress. But like the thousands of affected small businesses, we want to see redress paid quickly to those who have suffered loss as the result of mis-selling.